This only common stock among the top two small-cap funds has more than quadrupled in the year

Avanti Feeds has returned a staggering 320% in the year. Interestingly, it is the only common stock between the top two small cap mutual funds which have returned more than 42% each in the year so far.

Avanti Feeds has returned a staggering 320% in the year. (Image: PTI)

Smallcaps have had a stellar run in the bourses since January, as reflected by the 34% returns in the period. However, this multi-bagger, Avanti Feeds has returned a staggering 320% in the year. Interestingly, it is the only common stock between the top two small cap mutual funds which have returned more than 42% each in the year so far. L&T Emerging Businesses and SBI Small & Midcap fund are the two top performers in the year so far with returns of 43.3% and 42% respectively, data from Value Research online showed. Both the funds have taken considerable exposure to Avanti Feeds. While L&T Emerging Businesses has invested 1.75% of the total assets in the FMCG player, SBI Small & Midcap has invested more than 2.25% of its total assets into the stock.

Avanti Feeds has outperformed the BSE Smallcap index by leaps and bounds, and the stock is up by more than 50% in the last three months itself. Yesterday, Ashwani Gujral, the technical analysis expert told CNBC TV18 that the stock is a buy even at these levels. In conversation with CNBC TV18, he said on Monday, “Avanti Feeds is a buy with a stop loss of Rs 1950 and a target of Rs 2100.” The shares of Avanti Feeds were trading at Rs this morning.

While in the equity largecap segment, mutual fund managers have taken a fancy to a few well-known bluechip stocks, the smallcap segment doesn’t have a single common scrip among the top three funds. Notably, L&T Emerging businesses has taken a heavy exposure to Max Financial Services, investing more than 3.5% of total assets into the scrip, while SBI smallcap has invested more than 5% into Orient Refractories ltd.

Avanti Feeds’ reported a consolidated revenue for the quarter came at Rs. 998.2 crore, registering 37.8% yoy increase. This was primarily driven by increase in revenue from Power, Shrimp feed and processed shrimp by 46.7%, 39.6% and 25.4% respectively, all compared to the respective revenues previous fiscal. EBITDA for the quarter rose by 195.8% yoy to Rs. 225 crore with a corresponding margin expansion of 1204 bps. EBITDA margin for the quarter stood at 22.5%. The PAT for the quarter came in at Rs. 148.8 crore, a year increase of 203.6%. Company is having existing capacity of 4,25,000 Metric Tonnes and has proposed capacity addition of 1,75,000 Metric Tonnes by December, 2017 by investing Rs 50 crore. The shares were trading at Rs 2,095.4, up by more than 0.3%.